Delaware
|
84-1460811
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
|
|
3200 Walnut Street, Boulder, CO
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80301
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
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(303) 381-6600
|
|
(Registrant’s Telephone Number, Including Area Code)
|
Large Accelerated Filer
x
|
Accelerated Filer
¨
|
Non-Accelerated Filer
¨
|
Smaller Reporting Company
¨
|
(do not check if smaller reporting company)
|
|
|
Emerging Growth Company
¨
|
|
|
|
|
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Page No.
|
|
||
Condensed Consolidated
Financial Statements
|
|
|
|
Condensed Consolidated
Balance Sheets as of
December 31, 2017 and
June 30, 2017 (unaudited)
|
|
|
Condensed Consolidated Statements of Operations and Comprehensive Loss for the
three and six months ended December 31, 2017 and 2016 (unaudited)
|
|
|
Condensed Consolidated Statement of Stockholders' Equity for the six months ended
December 31, 2017 (unaudited)
|
|
|
Condensed Consolidated
Statements of Cash Flows for the
six months ended
December 31, 2017 and 2016 (unaudited)
|
|
|
Notes to the Unaudited Condensed
Consolidated
Financial Statements
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
December 31,
|
|
June 30,
|
||||
|
2017
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
65,051
|
|
|
$
|
125,933
|
|
Marketable securities
|
354,221
|
|
|
108,390
|
|
||
Accounts receivable
|
29,970
|
|
|
31,279
|
|
||
Prepaid expenses and other current assets
|
4,614
|
|
|
4,575
|
|
||
Total current assets
|
453,856
|
|
|
270,177
|
|
||
|
|
|
|
||||
Long-term assets
|
|
|
|
||||
Marketable securities
|
1,045
|
|
|
732
|
|
||
Property and equipment, net
|
7,206
|
|
|
8,132
|
|
||
Other long-term assets
|
738
|
|
|
104
|
|
||
Total long-term assets
|
8,989
|
|
|
8,968
|
|
||
Total assets
|
$
|
462,845
|
|
|
$
|
279,145
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable
|
$
|
10,996
|
|
|
$
|
8,636
|
|
Accrued outsourcing costs
|
27,301
|
|
|
31,388
|
|
||
Accrued compensation and benefits
|
6,772
|
|
|
10,172
|
|
||
Other accrued expenses
|
1,754
|
|
|
1,575
|
|
||
Deferred rent
|
671
|
|
|
624
|
|
||
Notes payable at fair value
|
12,700
|
|
|
—
|
|
||
Deferred revenue
|
13,419
|
|
|
17,156
|
|
||
Total current liabilities
|
73,613
|
|
|
69,551
|
|
||
|
|
|
|
||||
Long-term liabilities
|
|
|
|
||||
Deferred rent
|
5,766
|
|
|
5,714
|
|
||
Deferred revenue
|
46,821
|
|
|
57,325
|
|
||
Long-term debt, net
|
93,264
|
|
|
121,305
|
|
||
Notes payable at fair value
|
—
|
|
|
12,600
|
|
||
Other long-term liabilities
|
1,199
|
|
|
923
|
|
||
Total long-term liabilities
|
147,050
|
|
|
197,867
|
|
||
Total liabilities
|
220,663
|
|
|
267,418
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
Stockholders' equity
|
|
|
|
||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value; 280,000,000 shares authorized, 207,458,268 and 171,307,715 shares issued and outstanding as of December 31, 2017 and June 30, 2017, respectively
|
207
|
|
|
171
|
|
||
Additional paid-in capital
|
1,233,359
|
|
|
930,293
|
|
||
Accumulated other comprehensive loss
|
(676
|
)
|
|
(76
|
)
|
||
Accumulated deficit
|
(990,708
|
)
|
|
(918,661
|
)
|
||
Total stockholders' equity
|
242,182
|
|
|
11,727
|
|
||
Total liabilities and stockholders' equity
|
$
|
462,845
|
|
|
$
|
279,145
|
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Reimbursement revenue
|
$
|
22,395
|
|
|
$
|
27,948
|
|
|
$
|
40,587
|
|
|
$
|
59,269
|
|
Collaboration and other revenue
|
8,508
|
|
|
6,030
|
|
|
16,516
|
|
|
12,319
|
|
||||
License and milestone revenue
|
11,315
|
|
|
10,545
|
|
|
14,861
|
|
|
12,206
|
|
||||
Total revenue
|
42,218
|
|
|
44,523
|
|
|
71,964
|
|
|
83,794
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Cost of partnered programs
|
13,716
|
|
|
9,026
|
|
|
25,475
|
|
|
17,871
|
|
||||
Research and development for proprietary programs
|
42,613
|
|
|
46,469
|
|
|
84,058
|
|
|
93,032
|
|
||||
General and administrative
|
11,607
|
|
|
8,834
|
|
|
23,655
|
|
|
16,696
|
|
||||
Total operating expenses
|
67,936
|
|
|
64,329
|
|
|
133,188
|
|
|
127,599
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loss from operations
|
(25,718
|
)
|
|
(19,806
|
)
|
|
(61,224
|
)
|
|
(43,805
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income (expense)
|
|
|
|
|
|
|
|
||||||||
Loss on extinguishment and conversion of Notes
|
(6,457
|
)
|
|
—
|
|
|
(6,457
|
)
|
|
—
|
|
||||
Impairment loss related to cost method investment
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,500
|
)
|
||||
Change in fair value of notes payable
|
(300
|
)
|
|
(600
|
)
|
|
(100
|
)
|
|
(800
|
)
|
||||
Interest income
|
1,255
|
|
|
212
|
|
|
1,780
|
|
|
282
|
|
||||
Interest expense
|
(2,833
|
)
|
|
(3,107
|
)
|
|
(6,046
|
)
|
|
(6,086
|
)
|
||||
Total other income (expense), net
|
(8,335
|
)
|
|
(3,495
|
)
|
|
(10,823
|
)
|
|
(8,104
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(34,053
|
)
|
|
$
|
(23,301
|
)
|
|
$
|
(72,047
|
)
|
|
$
|
(51,909
|
)
|
|
|
|
|
|
|
|
|
||||||||
Change in unrealized loss on marketable securities
|
(634
|
)
|
|
(61
|
)
|
|
(600
|
)
|
|
(57
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive loss
|
$
|
(34,687
|
)
|
|
$
|
(23,362
|
)
|
|
$
|
(72,647
|
)
|
|
$
|
(51,966
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding – basic
|
199,852
|
|
|
168,127
|
|
|
187,312
|
|
|
156,613
|
|
||||
Weighted average shares outstanding – diluted
|
199,852
|
|
|
168,127
|
|
|
187,312
|
|
|
156,613
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net loss per share – basic
|
$
|
(0.17
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.38
|
)
|
|
$
|
(0.33
|
)
|
Net loss per share – diluted
|
$
|
(0.17
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.38
|
)
|
|
$
|
(0.33
|
)
|
|
|
|
|
|
|
|
|
||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
|
|
|
|
|
Additional Paid-in Capital
|
|
Accumulated Other Comprehensive Loss
|
|
Accumulated Deficit
|
|
Total
|
|||||||||||
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
Shares
|
|
Amounts
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2017
|
171,308
|
|
|
$
|
171
|
|
|
$
|
930,293
|
|
|
$
|
(76
|
)
|
|
$
|
(918,661
|
)
|
|
$
|
11,727
|
|
Shares issued for cash under employee share plans
|
2,887
|
|
|
2
|
|
|
14,601
|
|
|
—
|
|
|
—
|
|
|
14,603
|
|
|||||
Employee share-based compensation expense
|
—
|
|
|
—
|
|
|
8,819
|
|
|
—
|
|
|
—
|
|
|
8,819
|
|
|||||
Issuance of common stock, net of offering costs / At-the-market offering
|
324
|
|
|
1
|
|
|
2,829
|
|
|
—
|
|
|
—
|
|
|
2,830
|
|
|||||
Issuance of common stock, net of offering costs / Public offering
|
24,070
|
|
|
24
|
|
|
242,994
|
|
|
—
|
|
|
—
|
|
|
243,018
|
|
|||||
Extinguishment of 2020 Notes
|
7,956
|
|
|
8
|
|
|
(15,705
|
)
|
|
—
|
|
|
—
|
|
|
(15,697
|
)
|
|||||
Conversion of 2020 Notes
|
913
|
|
|
1
|
|
|
5,418
|
|
|
—
|
|
|
—
|
|
|
5,419
|
|
|||||
Issuance of 2024 Notes
|
—
|
|
|
—
|
|
|
44,110
|
|
|
—
|
|
|
—
|
|
|
44,110
|
|
|||||
Change in unrealized loss on marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(600
|
)
|
|
—
|
|
|
(600
|
)
|
|||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72,047
|
)
|
|
(72,047
|
)
|
|||||
Balance as of December 31, 2017
|
207,458
|
|
|
$
|
207
|
|
|
$
|
1,233,359
|
|
|
$
|
(676
|
)
|
|
$
|
(990,708
|
)
|
|
$
|
242,182
|
|
|
||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
|
Six Months Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net loss
|
$
|
(72,047
|
)
|
|
$
|
(51,909
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
1,138
|
|
|
971
|
|
||
Non-cash interest expense
|
3,640
|
|
|
3,439
|
|
||
Share-based compensation expense
|
8,819
|
|
|
4,008
|
|
||
Loss on extinguishment and conversion of Notes
|
6,457
|
|
|
—
|
|
||
Impairment loss related to cost method investment
|
—
|
|
|
1,500
|
|
||
Financing fees on notes payable
|
—
|
|
|
240
|
|
||
Change in fair value of notes payable
|
100
|
|
|
800
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
1,309
|
|
|
(3,820
|
)
|
||
Prepaid expenses and other assets
|
(673
|
)
|
|
3,993
|
|
||
Accounts payable and other accrued expenses
|
2,539
|
|
|
(3,594
|
)
|
||
Accrued outsourcing costs
|
(4,087
|
)
|
|
9,913
|
|
||
Accrued compensation and benefits
|
(3,400
|
)
|
|
(3,244
|
)
|
||
Deferred rent
|
99
|
|
|
493
|
|
||
Deferred revenue
|
(14,241
|
)
|
|
(5,163
|
)
|
||
Other long-term liabilities
|
171
|
|
|
163
|
|
||
Net cash used in operating activities
|
(70,176
|
)
|
|
(42,210
|
)
|
||
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
||||
Purchases of property and equipment
|
(212
|
)
|
|
(1,733
|
)
|
||
Purchases of marketable securities
|
(338,060
|
)
|
|
(197,516
|
)
|
||
Proceeds from sales and maturities of marketable securities
|
91,421
|
|
|
99,494
|
|
||
Net cash used in investing activities
|
(246,851
|
)
|
|
(99,755
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
||||
Proceeds from issuance of common stock / Public offering
|
258,750
|
|
|
132,250
|
|
||
Offering costs for issuance of common stock / Public offering
|
(15,732
|
)
|
|
(8,058
|
)
|
||
Proceeds from issuance of common stock / At-the-market offering
|
2,917
|
|
|
12,572
|
|
||
Offering costs for the issuance of common stock / At-the-market offering
|
(87
|
)
|
|
(331
|
)
|
||
Net proceeds from notes payable at fair value
|
—
|
|
|
9,760
|
|
||
Proceeds from employee stock purchases and options exercised
|
14,603
|
|
|
1,509
|
|
||
Proceeds from Silicon Valley Bank term loan
|
—
|
|
|
15,000
|
|
||
Repayment of Comerica term loan principal
|
—
|
|
|
(14,550
|
)
|
||
Payment for debt issuance costs
|
(4,306
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
256,145
|
|
|
148,152
|
|
||
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
(60,882
|
)
|
|
6,187
|
|
||
Cash and cash equivalents at beginning of period
|
125,933
|
|
|
56,598
|
|
||
Cash and cash equivalents at end of period
|
$
|
65,051
|
|
|
$
|
62,785
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
||||
Cash paid for interest
|
$
|
2,161
|
|
|
$
|
2,243
|
|
Change in unrealized loss on marketable securities
|
$
|
(600
|
)
|
|
$
|
(57
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
December 31,
|
|
December 31,
|
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Novartis Pharmaceuticals
|
53.1
|
%
|
|
63.8
|
%
|
|
56.4
|
%
|
|
71.8
|
%
|
Asahi Kasei
|
23.0
|
%
|
|
2.2
|
%
|
|
14.9
|
%
|
|
2.2
|
%
|
Pierre Fabre
|
10.5
|
%
|
|
7.0
|
%
|
|
11.8
|
%
|
|
6.7
|
%
|
Loxo Oncology
|
5.7
|
%
|
|
18.6
|
%
|
|
8.0
|
%
|
|
13.5
|
%
|
|
92.3
|
%
|
|
91.6
|
%
|
|
91.1
|
%
|
|
94.2
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
North America
|
$
|
4,662
|
|
|
$
|
9,528
|
|
|
$
|
10,163
|
|
|
$
|
13,626
|
|
Europe
|
26,852
|
|
|
34,035
|
|
|
49,148
|
|
|
68,341
|
|
||||
Asia Pacific
|
10,704
|
|
|
960
|
|
|
12,653
|
|
|
1,827
|
|
||||
Total revenue
|
$
|
42,218
|
|
|
$
|
44,523
|
|
|
$
|
71,964
|
|
|
$
|
83,794
|
|
|
December 31, 2017
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
Short-term available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
$
|
354,577
|
|
|
$
|
—
|
|
|
$
|
(676
|
)
|
|
$
|
353,901
|
|
Mutual fund securities
|
320
|
|
|
—
|
|
|
—
|
|
|
320
|
|
||||
|
354,897
|
|
|
—
|
|
|
(676
|
)
|
|
354,221
|
|
||||
Long-term available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Mutual fund securities
|
1,045
|
|
|
—
|
|
|
—
|
|
|
1,045
|
|
||||
|
1,045
|
|
|
—
|
|
|
—
|
|
|
1,045
|
|
||||
Total
|
$
|
355,942
|
|
|
$
|
—
|
|
|
$
|
(676
|
)
|
|
$
|
355,266
|
|
|
June 30, 2017
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
Short-term available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
$
|
108,174
|
|
|
$
|
—
|
|
|
$
|
(76
|
)
|
|
$
|
108,098
|
|
Mutual fund securities
|
292
|
|
|
—
|
|
|
—
|
|
|
292
|
|
||||
|
108,466
|
|
|
—
|
|
|
(76
|
)
|
|
108,390
|
|
||||
Long-term available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Mutual fund securities
|
732
|
|
|
—
|
|
|
—
|
|
|
732
|
|
||||
|
732
|
|
|
—
|
|
|
—
|
|
|
732
|
|
||||
Total
|
$
|
109,198
|
|
|
$
|
—
|
|
|
$
|
(76
|
)
|
|
$
|
109,122
|
|
|
Amortized
|
|
Fair
|
||||
|
Cost
|
|
Value
|
||||
Due in one year or less
|
$
|
354,577
|
|
|
$
|
353,901
|
|
Total
|
$
|
354,577
|
|
|
$
|
353,901
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
December 31,
|
|
December 31,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Reimbursement revenue
|
|
|
|
|
|
|
|
|
||||||||
Novartis (1)
|
|
$
|
22,395
|
|
|
$
|
27,948
|
|
|
$
|
40,587
|
|
|
$
|
59,269
|
|
|
|
|
|
|
|
|
|
|
||||||||
Collaboration and other revenue
|
|
|
|
|
|
|
|
|||||||||
Pierre Fabre
|
|
3,674
|
|
|
2,375
|
|
|
7,023
|
|
|
4,153
|
|
||||
Loxo
|
|
2,395
|
|
|
1,938
|
|
|
4,653
|
|
|
4,805
|
|
||||
Mirati
|
|
1,422
|
|
|
875
|
|
|
2,811
|
|
|
1,750
|
|
||||
Amgen
|
|
500
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
||||
Asahi Kasei
|
|
262
|
|
|
361
|
|
|
730
|
|
|
628
|
|
||||
Cascadian
|
|
75
|
|
|
15
|
|
|
106
|
|
|
52
|
|
||||
Ono
|
|
87
|
|
|
—
|
|
|
87
|
|
|
—
|
|
||||
Celgene
|
|
60
|
|
|
—
|
|
|
68
|
|
|
—
|
|
||||
Novartis (2)
|
|
—
|
|
|
450
|
|
|
—
|
|
|
900
|
|
||||
Other partners
|
|
33
|
|
|
16
|
|
|
38
|
|
|
31
|
|
||||
Total collaboration and other revenue
|
8,508
|
|
|
6,030
|
|
|
16,516
|
|
|
12,319
|
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
License and milestone revenue
|
|
|
|
|
|
|
|
|
||||||||
Asahi Kasei
|
|
9,437
|
|
|
600
|
|
|
10,000
|
|
|
1,200
|
|
||||
Ono
|
|
919
|
|
|
—
|
|
|
1,837
|
|
|
—
|
|
||||
Pierre Fabre
|
|
750
|
|
|
750
|
|
|
1,500
|
|
|
1,500
|
|
||||
Loxo
|
|
—
|
|
|
6,362
|
|
|
1,107
|
|
|
6,465
|
|
||||
Mirati
|
|
209
|
|
|
208
|
|
|
417
|
|
|
416
|
|
||||
Roche
|
|
—
|
|
|
2,500
|
|
|
—
|
|
|
2,500
|
|
||||
Other Partners
|
|
—
|
|
|
125
|
|
|
—
|
|
|
125
|
|
||||
Total license and milestone revenue
|
|
11,315
|
|
|
10,545
|
|
|
14,861
|
|
|
12,206
|
|
||||
Total revenue
|
|
$
|
42,218
|
|
|
$
|
44,523
|
|
|
$
|
71,964
|
|
|
$
|
83,794
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Represents the recognition of revenue that was deferred from the consideration received in March 2015 upon the effective date of the Termination and Asset Transfer Agreement with Novartis relating to binimetinib.
|
|
December 31,
|
|
June 30,
|
||||
|
2017
|
|
2017
|
||||
Ono
|
$
|
29,392
|
|
|
$
|
31,229
|
|
Pierre Fabre
|
23,895
|
|
|
25,395
|
|
||
Asahi Kasei
|
—
|
|
|
9,000
|
|
||
Mirati
|
2,750
|
|
|
4,167
|
|
||
Loxo
|
3,203
|
|
|
2,690
|
|
||
Amgen
|
1,000
|
|
|
2,000
|
|
||
Total deferred revenue
|
60,240
|
|
|
74,481
|
|
||
Less: Current portion
|
(13,419
|
)
|
|
(17,156
|
)
|
||
Deferred revenue, long-term portion
|
$
|
46,821
|
|
|
$
|
57,325
|
|
|
December 31,
|
|
June 30,
|
||||
|
2017
|
|
2017
|
||||
Notes Payable at fair value
|
$
|
12,700
|
|
|
$
|
12,600
|
|
|
|
|
|
||||
2020 convertible senior notes
|
$
|
—
|
|
|
$
|
132,250
|
|
2024 convertible senior notes
|
126,060
|
|
|
—
|
|
||
Silicon Valley Bank term loan (1)
|
16,200
|
|
|
16,200
|
|
||
Long-term debt, gross
|
142,260
|
|
|
148,450
|
|
||
Less: Unamortized debt discount and fees
|
(48,996
|
)
|
|
(27,145
|
)
|
||
Long-term debt, net
|
$
|
93,264
|
|
|
$
|
121,305
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Notes payable
|
|
|
|
|
|
|
|
||||||||
Simple interest
|
$
|
126
|
|
|
$
|
127
|
|
|
$
|
252
|
|
|
$
|
166
|
|
Fees paid
|
—
|
|
|
123
|
|
|
—
|
|
|
241
|
|
||||
Total interest expense on the notes payable at fair value
|
126
|
|
|
250
|
|
|
252
|
|
|
407
|
|
||||
Comerica Term Loan (1)
|
|
|
|
|
|
|
|
||||||||
Simple interest
|
—
|
|
|
117
|
|
|
—
|
|
|
247
|
|
||||
Amortization of prepaid fees for letters of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Total interest expense on the Comerica term loan
|
—
|
|
|
117
|
|
|
—
|
|
|
249
|
|
||||
Silicon Valley Bank Term Loan
|
|
|
|
|
|
|
|
||||||||
Simple interest
|
87
|
|
|
7
|
|
|
180
|
|
|
7
|
|
||||
Amortization of prepaid fees for line of credit
|
44
|
|
|
—
|
|
|
85
|
|
|
—
|
|
||||
Amortization of debt discount
|
81
|
|
|
—
|
|
|
162
|
|
|
—
|
|
||||
Total interest expense on the Silicon Valley Bank term loan
|
212
|
|
|
7
|
|
|
427
|
|
|
7
|
|
||||
Convertible Senior Notes
|
|
|
|
|
|
|
|
||||||||
Contractual interest
|
896
|
|
|
992
|
|
|
1,889
|
|
|
1,984
|
|
||||
Amortization of debt discount
|
1,512
|
|
|
1,648
|
|
|
3,291
|
|
|
3,255
|
|
||||
Amortization of debt issuance costs
|
87
|
|
|
93
|
|
|
187
|
|
|
184
|
|
||||
Total interest expense on convertible senior notes
|
2,495
|
|
|
2,733
|
|
|
5,367
|
|
|
5,423
|
|
||||
Total interest expense
|
$
|
2,833
|
|
|
$
|
3,107
|
|
|
$
|
6,046
|
|
|
$
|
6,086
|
|
|
|
Fair Value Measurement as of December 31, 2017
|
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
Current Assets
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
|
$
|
353,901
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
353,901
|
|
|
Mutual fund securities
|
|
320
|
|
|
—
|
|
|
—
|
|
|
320
|
|
|
||||
Long-term Assets
|
|
|
|
|
|
|
|
|
|
||||||||
Mutual fund securities
|
|
1,045
|
|
|
—
|
|
|
—
|
|
|
1,045
|
|
|
||||
Total assets
|
|
$
|
355,266
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
355,266
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Notes payable, at fair value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,700
|
|
|
$
|
12,700
|
|
|
|
|
Fair Value Measurement as of June 30, 2017
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current Assets
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
|
$
|
108,098
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
108,098
|
|
Mutual fund securities
|
|
292
|
|
|
—
|
|
|
—
|
|
|
292
|
|
||||
Long-term Assets
|
|
|
|
|
|
|
|
|
||||||||
Mutual fund securities
|
|
732
|
|
|
—
|
|
|
—
|
|
|
732
|
|
||||
Total assets
|
|
$
|
109,122
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
109,122
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Notes payable, at fair value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,600
|
|
|
$
|
12,600
|
|
|
|
Notes Payable at Fair Value
|
||
Balance at June 30, 2017
|
|
$
|
12,600
|
|
Change in fair value
|
|
100
|
|
|
Balance at December 31, 2017
|
|
$
|
12,700
|
|
•
|
Risk-free interest rate - The Company determines the risk-free interest rate by using a weighted average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate.
|
•
|
Expected term - The Company estimates the expected term of its options based upon historical exercises and post-vesting termination behavior.
|
•
|
Expected volatility - The Company estimates expected volatility using daily historical trading data of its common stock.
|
•
|
Dividend yield - The Company has never paid dividends and currently have no plans to do so; therefore, no dividend yield is applied.
|
|
Six Months Ended December 31,
|
||
|
2017
|
|
2016
|
Risk-free interest rate
|
1.6% - 2.04%
|
|
1.1% - 2.1%
|
Expected option term in years
|
3.92 - 4.10
|
|
5.5
|
Expected volatility
|
66.1% - 67.0%
|
|
57.0% - 64.5%
|
Dividend yield
|
0%
|
|
0%
|
Weighted average grant date fair value
|
$5.37
|
|
$4.23
|
|
Number of
Options |
|
Weighted
Average Exercise Price |
|
Weighted Average Remaining Contractual Term (in years)
|
|
Aggregate Intrinsic Value (in thousands)
|
|||||
Outstanding at June 30, 2017
|
14,844,028
|
|
|
$
|
5.57
|
|
|
|
|
|
||
Granted
|
3,094,150
|
|
|
$
|
10.56
|
|
|
|
|
|
||
Exercised
|
(2,629,526
|
)
|
|
$
|
5.47
|
|
|
|
|
|
||
Forfeited
|
(388,551
|
)
|
|
$
|
7.21
|
|
|
|
|
|
||
Expired or canceled
|
(10,000
|
)
|
|
$
|
11.28
|
|
|
|
|
|
||
Outstanding balance at December 31, 2017
|
14,910,101
|
|
|
$
|
6.58
|
|
|
7.7
|
|
$
|
92,791
|
|
Vested and expected to vest at December 31, 2017
|
14,887,879
|
|
|
$
|
6.58
|
|
|
7.7
|
|
$
|
92,652
|
|
Exercisable at December 31, 2017
|
5,906,109
|
|
|
$
|
4.83
|
|
|
6.1
|
|
$
|
47,044
|
|
|
Number of RSUs
|
|
Weighted
Average Grant Date Fair Value |
|||
Unvested at June 30, 2017
|
982,709
|
|
|
$
|
6.27
|
|
Granted
|
484,884
|
|
|
$
|
10.90
|
|
Vested
|
(193,901
|
)
|
|
7.09
|
|
|
Forfeited
|
(28,952
|
)
|
|
3.27
|
|
|
Unvested at December 31, 2017
|
1,244,740
|
|
|
8.02
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||
|
December 31,
|
December 31,
|
||||||||||||
|
2017
|
|
2016
|
2017
|
|
2016
|
||||||||
Net loss - basic and diluted
|
$
|
(34,053
|
)
|
|
$
|
(23,301
|
)
|
$
|
(72,047
|
)
|
|
$
|
(51,909
|
)
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding -
basic and diluted
|
199,852
|
|
|
168,127
|
|
187,312
|
|
|
156,613
|
|
||||
|
|
|
|
|
|
|
||||||||
Per share data:
|
|
|
|
|
|
|
||||||||
Basic and diluted
|
$
|
(0.17
|
)
|
|
$
|
(0.14
|
)
|
$
|
(0.38
|
)
|
|
$
|
(0.33
|
)
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
2.625% convertible senior notes
|
8,156
|
|
|
—
|
|
3.00% convertible senior notes
|
—
|
|
|
18,762
|
|
Stock options
|
14,910
|
|
|
14,500
|
|
RSUs
|
1,245
|
|
|
1,116
|
|
Total anti-dilutive common stock equivalents excluded from diluted loss per share calculation
|
24,311
|
|
|
34,378
|
|
|
Drug Candidate
|
|
Target/Indication
|
|
Partner
|
|
Clinical Status
|
|
Binimetinib
|
|
MEK inhibitor for cancer
|
|
Pierre Fabre Medicament SAS and Ono Pharmaceutical Co., Ltd.
|
|
Phase 3 / New Drug Application ("NDA")
|
|
Encorafenib
|
|
BRAF inhibitor for cancer
|
|
Pierre Fabre Medicament SAS and Ono Pharmaceutical Co., Ltd.
|
|
Phase 3 / NDA
|
|
Selumetinib
|
|
MEK inhibitor for cancer and NF1 (1)
|
|
AstraZeneca, PLC
|
|
Phase 3
|
|
ASC08/Danoprevir
|
|
Protease inhibitor for Hepatitis C virus
|
|
Roche Holding AG
|
|
Phase 3 / China NDA
|
|
Larotrectinib / LOXO-101
|
|
PanTrk inhibitor for cancer
|
|
Loxo Oncology, Inc.
|
|
Phase 2 / Registration Trial / Rolling NDA
|
|
Ipatasertib / GDC-0068
|
|
AKT inhibitor for cancer
|
|
Genentech, Inc.
|
|
Phase 3
|
|
Tucatinib / ONT-380
|
|
HER2 inhibitor for breast cancer
|
|
Cascadian Therapeutics, Inc.
|
|
Phase 2 / Registration Trial
|
|
Varlitinib / ASLAN001
|
|
Pan-HER2 inhibitor for gastric or breast cancer
|
|
ASLAN Pharmaceuticals Pte Ltd.
|
|
Phase 2 / 3
|
|
ARRY-797
|
|
p38 inhibitor for Lamin A/C-related dilated cardiomyopathy
|
|
Yarra Therapeutics, LLC, wholly-owned subsidiary of Array
|
|
Phase 2
|
|
Motolimod/VTX-2337
|
|
Toll-like receptor for cancer
|
|
Celgene Corp. / VentiRx Pharmaceuticals, Inc.
|
|
Phase 2
|
|
Prexasertib/LY2606368
|
|
Chk-1 inhibitor for cancer
|
|
Eli Lilly and Company
|
|
Phase 2
|
|
ARRY-382
|
|
CSF1R inhibitor for cancer
|
|
|
|
Phase 2
|
|
GDC-0575
|
|
Chk-1 inhibitor for cancer
|
|
Genentech, Inc.
|
|
Phase 1b
|
|
LOXO-292
|
|
Ret inhibitor for cancer
|
|
Loxo Oncology, Inc.
|
|
Phase 1
|
|
LOXO-195
|
|
Trk inhibitor for cancer
|
|
Loxo Oncology, Inc.
|
|
Phase 1
|
|
AK-1830
|
|
TrkA selective inhibitor for inflammation
|
|
Asahi Kasei Pharma Corporation
|
|
Phase 1
|
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
December 31,
|
|
2017 vs. 2016
|
|
December 31,
|
|
2017 vs. 2016
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
||||||||||||||
Reimbursement revenue
|
$
|
22,395
|
|
|
$
|
27,948
|
|
|
$
|
(5,553
|
)
|
|
(20
|
)%
|
|
$
|
40,587
|
|
|
$
|
59,269
|
|
|
$
|
(18,682
|
)
|
|
(32
|
)%
|
Collaboration and other revenue
|
8,508
|
|
|
6,030
|
|
|
$
|
2,478
|
|
|
41
|
%
|
|
16,516
|
|
|
12,319
|
|
|
$
|
4,197
|
|
|
34
|
%
|
||||
License and milestone revenue
|
11,315
|
|
|
10,545
|
|
|
$
|
770
|
|
|
7
|
%
|
|
14,861
|
|
|
12,206
|
|
|
$
|
2,655
|
|
|
22
|
%
|
||||
Total revenue
|
$
|
42,218
|
|
|
$
|
44,523
|
|
|
$
|
(2,305
|
)
|
|
(5
|
)%
|
|
$
|
71,964
|
|
|
$
|
83,794
|
|
|
$
|
(11,830
|
)
|
|
(14
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
December 31,
|
|
2017 vs. 2016
|
|
December 31,
|
|
2017 vs. 2016
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
||||||||||||||
Cost of partnered programs
|
$
|
13,716
|
|
|
$
|
9,026
|
|
|
$
|
4,690
|
|
|
52
|
%
|
|
$
|
25,475
|
|
|
$
|
17,871
|
|
|
$
|
7,604
|
|
|
43
|
%
|
Research and development for proprietary programs
|
42,613
|
|
|
46,469
|
|
|
(3,856
|
)
|
|
(8
|
)%
|
|
84,058
|
|
|
93,032
|
|
|
(8,974
|
)
|
|
(10
|
)%
|
||||||
General and administrative
|
11,607
|
|
|
8,834
|
|
|
2,773
|
|
|
31
|
%
|
|
23,655
|
|
|
16,696
|
|
|
6,959
|
|
|
42
|
%
|
||||||
Total operating expenses
|
$
|
67,936
|
|
|
$
|
64,329
|
|
|
$
|
3,607
|
|
|
6
|
%
|
|
$
|
133,188
|
|
|
$
|
127,599
|
|
|
$
|
5,589
|
|
|
4
|
%
|
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
December 31,
|
|
2017 vs. 2016
|
|
December 31,
|
|
2017 vs. 2016
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
||||||||||||||
Salaries, benefits and share-based compensation
|
$
|
7,748
|
|
|
$
|
3,652
|
|
|
$
|
4,096
|
|
|
112
|
%
|
|
$
|
15,238
|
|
|
$
|
12,014
|
|
|
$
|
3,224
|
|
|
27
|
%
|
Outsourced services and consulting
|
33,241
|
|
|
41,162
|
|
|
(7,921
|
)
|
|
(19
|
)%
|
|
65,258
|
|
|
75,795
|
|
|
(10,537
|
)
|
|
(14
|
)%
|
||||||
Laboratory supplies
|
1,197
|
|
|
708
|
|
|
489
|
|
|
69
|
%
|
|
2,283
|
|
|
2,315
|
|
|
(32
|
)
|
|
(1
|
)%
|
||||||
Facilities and depreciation
|
235
|
|
|
786
|
|
|
(551
|
)
|
|
(70
|
)%
|
|
648
|
|
|
2,095
|
|
|
(1,447
|
)
|
|
(69
|
)%
|
||||||
Other
|
192
|
|
|
161
|
|
|
31
|
|
|
19
|
%
|
|
631
|
|
|
813
|
|
|
(182
|
)
|
|
(22
|
)%
|
||||||
Total research and development expenses
|
$
|
42,613
|
|
|
$
|
46,469
|
|
|
$
|
(3,856
|
)
|
|
(8
|
)%
|
|
$
|
84,058
|
|
|
$
|
93,032
|
|
|
$
|
(8,974
|
)
|
|
(10
|
)%
|
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
December 31,
|
|
2017 vs. 2016
|
|
December 31,
|
|
2017 vs. 2016
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
||||||||||||||
Loss on extinguishment and conversion of Notes
|
$
|
(6,457
|
)
|
|
$
|
—
|
|
|
$
|
(6,457
|
)
|
|
(a)
|
|
|
$
|
(6,457
|
)
|
|
$
|
—
|
|
|
$
|
(6,457
|
)
|
|
(a)
|
|
Impairment loss related to cost method investment
|
—
|
|
|
—
|
|
|
—
|
|
|
(a)
|
|
|
—
|
|
|
(1,500
|
)
|
|
1,500
|
|
|
(100
|
)%
|
||||||
Change in fair value of notes payable
|
(300
|
)
|
|
(600
|
)
|
|
300
|
|
|
(50
|
)%
|
|
(100
|
)
|
|
(800
|
)
|
|
700
|
|
|
(88
|
)%
|
||||||
Interest income
|
1,255
|
|
|
212
|
|
|
1,043
|
|
|
492
|
%
|
|
1,780
|
|
|
282
|
|
|
1,498
|
|
|
531
|
%
|
||||||
Interest expense
|
(2,833
|
)
|
|
(3,107
|
)
|
|
274
|
|
|
(9
|
)%
|
|
(6,046
|
)
|
|
(6,086
|
)
|
|
40
|
|
|
(1
|
)%
|
||||||
Total other income (expense), net
|
$
|
(8,335
|
)
|
|
$
|
(3,495
|
)
|
|
$
|
(4,840
|
)
|
|
138
|
%
|
|
$
|
(10,823
|
)
|
|
$
|
(8,104
|
)
|
|
$
|
(2,719
|
)
|
|
34
|
%
|
|
December 31, 2017
|
|
June 30, 2017
|
|
$ Change
|
||||||
Cash and cash equivalents
|
$
|
65,051
|
|
|
$
|
125,933
|
|
|
$
|
(60,882
|
)
|
Marketable securities – short-term
|
354,221
|
|
|
108,390
|
|
|
245,831
|
|
|||
Marketable securities – long-term
|
1,045
|
|
|
732
|
|
|
313
|
|
|||
Accounts receivable
|
29,970
|
|
|
31,279
|
|
|
(1,309
|
)
|
|||
Total
|
$
|
450,287
|
|
|
$
|
266,334
|
|
|
$
|
183,953
|
|
|
Six Months Ended December 31,
|
|
|
||||||||
|
2017
|
|
2016
|
|
$ Change
|
||||||
Cash flows provided by (used in):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
(70,176
|
)
|
|
$
|
(42,210
|
)
|
|
$
|
(27,966
|
)
|
Investing activities
|
(246,851
|
)
|
|
(99,755
|
)
|
|
(147,096
|
)
|
|||
Financing activities
|
256,145
|
|
|
148,152
|
|
|
107,993
|
|
|||
Total
|
$
|
(60,882
|
)
|
|
$
|
6,187
|
|
|
$
|
(67,069
|
)
|
By:
|
/s/ RON SQUARER
|
|
Ron Squarer
|
|
Chief Executive Officer
|
|
|
|
|
By:
|
/s/ JASON HADDOCK
|
|
Jason Haddock
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
Incorporated by Reference
|
||||
Exhibit Number
|
|
Description of Exhibit
|
|
Form
|
|
File No.
|
|
Date Filed
|
3.1
|
|
|
10-K
|
|
001-16633
|
|
8/19/2016
|
|
3.2
|
|
|
Filed herewith
|
|||||
4.1
|
|
|
S-1/A
|
|
333-45922
|
|
10/27/2000
|
|
4.2
|
|
Indenture, dated as of December 1, 2017, by and between Array BioPharma Inc. and the Bank of New York Mellon Trust Company, N.A.
|
|
8-K
|
|
001-16633
|
|
12/4/2017
|
4.3
|
|
Form of 2.625% Convertible Senior Notes due 2024
|
|
8-K
|
|
001-16633
|
|
12/4/2017
|
10.1
|
|
|
Filed herewith
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
Filed herewith
|
|||||
31.2
|
|
|
Filed herewith
|
|||||
32.1
|
|
|
Furnished
|
|||||
101.INS
|
|
XBRL Instance Document
|
|
Filed herewith
|
||||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
Filed herewith
|
||||
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
Filed herewith
|
||||
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
Filed herewith
|
||||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Filed herewith
|
||||
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
Filed herewith
|
|
|
Page
|
||||||
|
|
|
|
|
||||
1.
|
|
OFFICES
|
|
1
|
||||
|
|
1.1.
|
|
Registered Office
|
|
1
|
||
|
|
1.2.
|
|
Other Offices
|
|
1
|
||
2.
|
|
MEETINGS OF STOCKHOLDERS
|
|
1
|
||||
|
|
2.1.
|
|
Place of Meetings
|
|
1
|
||
|
|
2.2.
|
|
Annual Meetings
|
|
1
|
||
|
|
2.3.
|
|
Special Meetings
|
|
2
|
||
|
|
2.4.
|
|
Notice of Meetings
|
|
2
|
||
|
|
2.5.
|
|
Waivers of Notice
|
|
3
|
||
|
|
2.6.
|
|
List of Stockholders
|
|
3
|
||
|
|
2.7.
|
|
Quorum at Meetings
|
|
3
|
||
|
|
2.8.
|
|
Voting; Proxies
|
|
3
|
||
|
|
2.9.
|
|
Required Vote
|
|
4
|
||
|
|
2.10.
|
|
Inspectors
|
|
4
|
||
3.
|
|
DIRECTORS
|
|
4
|
||||
|
|
3.1.
|
|
Powers
|
|
4
|
||
|
|
3.2.
|
|
Number and Election
|
|
5
|
||
|
|
3.3.
|
|
Nomination; Vacancies
|
|
5
|
||
|
|
3.4.
|
|
Meetings
|
|
5
|
||
|
|
|
|
3.4.1.
|
Regular Meetings
|
|
5
|
|
|
|
|
|
3.4.2.
|
Special Meetings
|
|
5
|
|
|
|
|
|
3.4.3.
|
Telephone Meetings
|
|
5
|
|
|
|
|
|
3.4.4.
|
Action Without Meeting
|
|
5
|
|
|
|
|
|
3.4.5.
|
Waiver of Notice of Meeting
|
|
5
|
|
|
|
3.5.
|
|
Quorum and Vote at Meetings
|
|
6
|
||
|
|
3.6.
|
|
Committees of Directors
|
|
6
|
||
|
|
3.7.
|
|
Compensation of Directors
|
|
6
|
||
4.
|
|
OFFICERS
|
|
6
|
||||
|
|
4.1.
|
|
Positions
|
|
6
|
||
|
|
4.2.
|
|
Chairperson
|
|
7
|
||
|
|
4.3.
|
|
Chief Executive Officer
|
|
7
|
||
|
|
4.4.
|
|
President
|
|
7
|
||
|
|
4.5.
|
|
Chief Operating Officer
|
|
7
|
||
|
|
4.6.
|
|
Chief Financial Officer
|
|
7
|
||
|
|
4.7.
|
|
Chief Science Officer
|
|
7
|
||
|
|
4.8.
|
|
Executive Vice President
|
|
7
|
||
|
|
4.9.
|
|
Senior Vice President
|
|
8
|
||
|
|
4.10.
|
|
Vice President
|
|
8
|
||
|
|
4.11.
|
|
Secretary
|
|
8
|
||
|
|
4.12.
|
|
Assistant Secretary
|
|
8
|
||
|
|
4.13.
|
|
Treasurer
|
|
8
|
||
|
|
4.14.
|
|
Assistant Treasurer
|
|
8
|
||
|
|
4.15.
|
|
Term of Office
|
|
8
|
||
|
|
4.16.
|
|
Compensation
|
|
8
|
||
|
|
4.17.
|
|
Fidelity Bonds
|
|
9
|
||
5.
|
|
CAPITAL STOCK
|
|
9
|
||||
|
|
5.1.
|
|
Certificates of Stock; Uncertificated Shares
|
|
9
|
||
|
|
5.2.
|
|
Lost Certificates
|
|
9
|
||
|
|
5.3.
|
|
Record Date
|
|
9
|
||
|
|
|
|
5.3.1.
|
Actions by Stockholders
|
|
9
|
|
|
|
|
|
5.3.2.
|
Payments
|
|
10
|
|
|
|
5.4.
|
|
Stockholders of Record
|
|
10
|
||
|
|
|
|
|
|
|
|
|
6.
|
|
INDEMNIFICATION; INSURANCE
|
|
10
|
||
|
|
6.1.
|
|
Authorization of Indemnification
|
|
10
|
|
|
6.2.
|
|
Right of Claimant to Bring Action Against the Corporation
|
|
11
|
|
|
6.3.
|
|
Non-exclusivity
|
|
11
|
|
|
6.4.
|
|
Survival of Indemnification
|
|
11
|
|
|
6.5.
|
|
Insurance
|
|
11
|
|
|
6.6.
|
|
Offset
|
|
11
|
|
|
6.7.
|
|
Effect of Amendments
|
|
12
|
7.
|
|
GENERAL PROVISIONS
|
|
12
|
||
|
|
7.1.
|
|
Inspection of Books and Records
|
|
12
|
|
|
7.2.
|
|
Dividends
|
|
12
|
|
|
7.3.
|
|
Reserves
|
|
12
|
|
|
7.4.
|
|
Execution of Instruments
|
|
12
|
|
|
7.5.
|
|
Fiscal Year
|
|
12
|
|
|
7.6.
|
|
Seal
|
|
12
|
|
/s/ Curtis Oltmans
|
|
Secretary
|
Event
|
Milestone Payment
|
1.
[*]
|
$
[*]
|
2.
[*]
|
$
[*]
|
3.
[*]
|
$
[*]
|
4.
[*]
|
$
[*]
|
5.
[*]
|
$
[*]
|
6.
[*]
|
$
[*]
|
7.
[*]
|
$
[*]
|
8.
[*]
|
$
[*]
|
9.
[*]
|
$
[*]
|
10.
[*]
|
$
[*]
|
ASLAN Net Sales in a
Given Calendar Year |
Royalty Rate
|
Less than US$
[*]
Million
|
[*]
%
|
From US$
[*]
Million to US$
[*]
Million
|
[*]
%
|
More than US$
[*]
Million
|
[*]
%
|
Chris Fang
ASLAN Pharmaceuticals
Tel: +886 2 2758 3333
E-mail:
media@aslanpharma.com
|
Emma Thompson / Stephanie Tan
Spurwing Communications
Tel: +65 6340 7287
Email:
ASLAN@spurwingcomms.com
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Array BioPharma Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within this entity, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 6, 2018
|
By:
|
/s/ RON SQUARER
|
|
|
|
Ron Squarer
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Array BioPharma Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within this entity, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 6, 2018
|
By:
|
/s/ JASON HADDOCK
|
|
|
|
Jason Haddock
|
|
|
|
Principal Accounting Officer
|
(a)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(b)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
Date:
|
February 6, 2018
|
/s/ RON SQUARER
|
|
|
Ron Squarer
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
/s/ JASON HADDOCK
|
|
|
Jason Haddock
|
|
|
Principal Accounting Officer
|
|
|
|